India's Chabahar Port Gets Six-Month US Sanctions Exemption - Here's Why It Matters

The United States has granted India a six-month exemption from sanctions for operations through the Iranian port of Chabahar along the Gulf of Oman, the Ministry of External Affairs (MEA) said on Thursday.

MEA spokesperson Randhir Jaiswal said the waiver allows India to continue developing the strategic port and noted that talks with the US for a trade deal are ongoing.At a media briefing, Jaiswal said India is also reviewing the impact of recent US sanctions on Russian oil companies.“We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market,” he said.“Our position on the larger question of energy sourcing is well known. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people,” Jaiswal added.India is a major partner in development of the Chabahar port, located in the Sistan-Balochistan province Iran's southern coast. It is currently operating the Shahid Beheshti terminal at the port.Earlier, India had said that it is examining the implications of the Trump administration's decision to revoke the 2018 sanctions waiver with regard to the strategically-located Chabahar port in Iran. The US State Department had earlier said that people operating the Chabahar Port and engaging in other related activities will face sanctions under the US Iran Freedom and Counter-Proliferation Act (IFCA) starting September 29.The move to revoke the 2018 sanctions waiver is consistent with President Donald Trump's maximum pressure policy to isolate the Iranian regime, State Department principal deputy spokesperson Thomas Pigott had said. "The Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29," he said. "Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA," Pigott added. The Chabahar port is being developed by India and Iran to boost connectivity and trade ties. Both the countries are also strongly pitching for making Chabahar port an integral part of the International North-South Transport Corridor (INSTC).